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Consolidated financial statements COGECO CABLE INC. 2012 65
B. GOODWILL
During fiscal 2012 and 2011, goodwill variations were as follows:
(In thousands of Canadian dollars) $
Cost
Balance at September 1, 2010 428,926
A
cquisitions through business combinations (note 5) 92,553
Discontinued operations 12,864
Balance at August 31, 2011 534,343
A
cquisitions through business combinations (note 5) 1,646
Discontinued operations (325,547)
Balance at August 31, 2012 210,442
Accumulated impairment losses
Balance at September 1, 2010 284,231
Discontinued operations 41,316
Balance at August 31, 2011 325,547
Discontinued operations (325,547)
Balance at August 31, 2012
Carrying amounts
A
t September 1, 2010 144,695
A
t August 31, 2011 208,796
At August 31, 2012 210,442
C. IMPAIRMENT TESTING OF GOODWILL AND INTANGIBLE ASSETS WITH INDEFINITE USEFUL LIVES
The Corporation performs impairment tests annually, or more frequently when there is an indication that assets may be impaired, based
on CGUs. For the purpose of impairment testing, goodwill and intangible assets with indefinite useful lives are allocated to each of the
Corporation’s CGUs as follows:
August 31, 2012 August 31, 2011 September 1, 2010
Industry segment Group of CGUs Goodwill
Cable
Distribution
Licenses Goodwill
Cable
Distribution
Licenses Goodwill
Cable
Distribution
Licenses
(In thousands of Canadian dollars) $$$$ $ $
Cable services Ontario 4,662 857,696 4,662 857,696 4,662 857,696
Cable services Quebe
c
109,304 109,304 109,304
Enterprise services Enterprise 205,780 204,134 111,581
Discountinued operations Portugal 
28,452
Total 210,442 967,000 208,796 967,000 144,695 967,000
At August 31, 2012 and 2011 and September 1, 2010, the Corporation tested the carrying value of goodwill and intangible assets with
indefinite useful lives for impairment. The recoverable amount of each CGU is calculated based on value in use. The value in use was
determined using cash flow projections derived from financial projections covering a five year period. They reflect management’s
expectation of revenue growth, expenses and margin for each CGU based on past experience. Cash flows beyond the five year period
have been extrapolated using an estimated terminal growth rate determined with regard to projected growth rates for the specific markets
in which the CGUs participate and are not considered to exceed the long-term average growth rates for those markets. Discount rates
applied to the cash flow forecasts are derived from the Corporation’s pre-tax weighted average cost of capital, adjusted for the different
risk profile of the individual CGUs. The recoverable amount of each CGU was determined to be higher than its carrying amount and no
impairment loss has been recognized at August 31, 2012 and 2011 and September 1, 2010.